Peridrome Corporation, a provider of business process management (BPM) applications to the wealth management industry, has joined the Depository Trust & Clearing Corporation’s (DTCC’s) Managed Accounts Service (MAS).
Peridrome will offer a gateway between its Dash BPM platform and MAS.
Today, managed accounts are processed through disparate technology platforms or through manual processes, increasing the potential for errors, delays and high operational costs. DTCC’s MAS will act as a centralised, automated gateway through which accounts can be opened and maintained, mitigating these risks and streamlining communications among investment managers, sponsors and service providers.
The service operates on DTCC’s secure SMART telecom network, which today provides connectivity to virtually all trading parties in the US and which will expand access to the growing number of firms active in the managed accounts space. MAS is offered through DTCC Solutions LLC, a subsidiary of DTCC.
“We’re very pleased to add Peridrome to those firms that have shown such strong support for our efforts to launch this service. The managed accounts industry is growing at such a dramatic rate that assets under management have already exceeded projections that were made for 2011. The industry clearly needs a solution that will bring about operational efficiencies to help support its growth and minimize risk,” says Ann Bergin, managing director and general manager, DTCC’s Wealth Management Services.
Managed accounts of all kinds – including separately managed accounts, unified managed accounts and multiple – style portfolios – currently have assets under management of $1.5 trillion, according to the MMI. Research firms, such as Tiburon Strategic Advisors and Financial Research Corp., are forecasting that by 2012 assets could swell to twice that number.
“DTCC’s new service represents a key part of the straight-through processing infrastructure required for the managed accounts industry to scale. Peridrome is delighted to partner with DTCC, whose vision and commitment have propelled the managed accounts industry’s move to electronic communications,” says Gib Veconi, president, Peridrome.
Veconi also co-chairs The Money Management Institute’s (MMI) Operations and Communications Standards Committee, of which DTCC has been an active participant. The committee develops message standards for use among industry participants.
Peridrome is the latest in a growing number of leading service providers that are connecting to MAS and providing middleware to their customers, thereby streamlining and expanding access to the service for industry members.
These service providers include SunGard Transaction Network, Vestmark, Octavian, Inc., ITG, Thunderhead, Redi2 Technologies, SEI and Evare, LLC.